Cambridge Centre for Alternative Finance
ALTERNATIVE FINANCE MARKET DATA
--GLOBAL BENCHMARKING
RUI HAO (PHD, CQF)
RESEARCH ASSOCIATE & DATA SCIENTIST
CAMBRIDGE CENTER FOR ALTERNATIVE FINANCE
20 MARCH 2018
I. CCAF Introduction
II. Global Alternative Finance Data Overview—Currency: US Dollars
III.European Alternative Finance Benchmarking Data—Currency: Euro
OUTLINE
2
Course Title | Presentation Title | Name or Initials (Go to Insert > Header & Footer to update text)3
I. CCAF INTRODUCTION
1. Alternative Finance Channels & Instruments (e.g. Fintech Models, Benchmarking Report)
2. Alternative Credit and Investment Analytics (e.g.Funder & Fundraiser Studies, FCA, SME Credit with Experian, World Largest Fintech Data Repository)
3. Alternative Payments & Distributed Ledger Technologies (e.g.Cryptocurrency & Blockchain)
4. Alternative Finance Regulations and Policy (e.g.Regulator Survey, RegSimple)
CCAF RESEARCH STREAMS
Course Title | Presentation Title | Name or Initials (Go to Insert > Header & Footer to update text)4
▪ 17 Industry Reports to Date and Academic Papers & Chapters
▪ 1500+ FinTech Platforms Surveyed in 2016
▪ Covering All Global Regions and More than 150 Countries
▪ 100+ Industry and FinTech Ecosystem Partners
▪ 20+ Academic Research Partners
▪ Over £10bn Worth of Granular-Level Transactional Data Collected
▪ 30 Million Micro-Transactions in the Dataset between Lenders/Investors/Backers and Borrowers/Fundraisers/
▪ 200+ Mainstream Press Citations to Date
▪ 100+ Policy and Regulatory Citations to Date
▪ Commissioned Programs (WB, IDB, FCA, FSD Africa, BBVA, Omidyar Network, etc.)
▪ Global Internships (Winter, Spring, Summer)
CAMBRIDGE CENTRE FOR ALTERNATIVE FINANCE (CCAF)
RESEARCH HIGHLIGHTS
5
FUNDERS
6
Course Title | Presentation Title | Name or Initials (Go to Insert > Header & Footer to update text)7
II. OVERVIEW OF GLOBAL ALTERNATIVE FINANCE
(Currency: US Dollars)
ALTERNATIVE FINANCE MARKET DATA 2013-2016
Course Title | Presentation Title | Name or Initials (Go to Insert > Header & Footer to update text)8
11,19
39,79
132,59
290,61
-
256%
233%
119%
0,00%
50,00%
100,00%
150,00%
200,00%
250,00%
300,00%
-
50,00
100,00
150,00
200,00
250,00
300,00
350,00
2013 2014 2015 2016
Mil m
ilhões
Total Volume Percentage of Change
ALTERNATIVE FINANCE MARKET TOTAL VOLUME BY REGIONS 2016
Course Title | Presentation Title | Name or Initials (Go to Insert > Header & Footer to update text)9
35,44
1,99
243,82
2,23 0,37 6,75 9,37
1,14
92,91
1,10 0,26 4,91
26%
57%
38%
49%
71%73%
0,00%
10,00%
20,00%
30,00%
40,00%
50,00%
60,00%
70,00%
80,00%
-
50,00
100,00
150,00
200,00
250,00
300,00
Americas Asia-Pacific China Europe Middle East Africa UK
Mil m
ilhões
Total_Volume($) Business_Finance Business_Fin_Percent
ALTERNATIVE FINANCE TOP 20 COUNTRIES 2016
Course Title | Presentation Title | Name or Initials (Go to Insert > Header & Footer to update text)10
Top 3 Total Volume:
China (83.93%)
USA (11.92%)
UK (2.32%)
Top 3 Business Finance:
China (84.74%)
USA (8.04%)
UK (4.48%)
DEFINATION OF TYPICAL MODELS
Course Title | Presentation Title | Name or Initials (Go to Insert > Header & Footer to update text)11
Alternative Finance Model Definition
Peer-to-Peer Consumer Lending Individuals or institutional funders provide a loan to a consumer borrower
Peer-to-Peer Business Lending Individuals or institutional funders provide a loan to a business borrower
Equity-based Crowdfunding Individuals or institutional funders purchase equity issued by a company
Reward-based Crowdfunding Backers provide finance to individuals, projects or companies in exchange for non-monetary
rewards or products
Invoice Trading Individuals or institutional funders purchase invoices or receivable notes from a business at a
discount
Real Estate Crowdfunding Individuals or institutional funders provide equity or subordinated-debt financing for real estate
Donation-based Crowdfunding Donors provide funding to individuals, projects or companies without expectations of monetary or
material return
Debt-based Securities Individuals or institutional funders purchase debt-based securities, typically a bond or debenture at
a fixed interest rate
Mini-Bonds Individuals or institutions purchase securities from companies in the form of an unsecured retail
bonds
Balance Sheet Business Lending The platform entity provides a loan directly to a business borrower
Profit Sharing Crowdfunding Individuals or institutions purchase securities from a company, such as shares or bonds, and share
in the profits or royalties of the business
P2P, BS,CROWDFUNDING & OTHER MODELS 2016
Course Title | Presentation Title | Name or Initials (Go to Insert > Header & Footer to update text)12
47,73
6,95 4,11
231,82
34,54
3,42 4,01
67,72
-
50,00
100,00
150,00
200,00
250,00
2016 2016 2016 2016
Balance Sheet Crowdfunding Other Models P2P
Mil m
ilhões
Sum of sum_total_volume
Sum of sum_total_busifin_volume
LOAN PURPOSES (P2P+BS) TOTAL VOLUME 2016
Course Title | Presentation Title | Name or Initials (Go to Insert > Header & Footer to update text)13
96,43
160,17
10,33
-
20,00
40,00
60,00
80,00
100,00
120,00
140,00
160,00
180,00
2016 2016 2016
Business Lending Consumer Lending Property Lending
Mil m
ilhões
36%
60%
4%
OTHER INFORMATION (FUNDERAISER, FUNDER, AVERAGE DEAL SIZE) BY REGIONS 2016
Course Title | Presentation Title | Name or Initials (Go to Insert > Header & Footer to update text)14
82,51
350,09
26,31 1,12 0,03
26,97 6,81 1,51
98,79
3,97 0,64 3,16 -
50,00
100,00
150,00
200,00
250,00
300,00
350,00
400,00
Americas Asia-Pacific China Europe Middle East Africa UK
Milhões
No. of Fundraisers No. of Funders
0,81
0,15 0,13 0,11
0,59
-
0,10
0,20
0,30
0,40
0,50
0,60
0,70
0,80
0,90
Americas Asia-Pacific China Europe Middle East Africa UK
Milhões
Average Deal Size
Property
Business Professions
Music & Arts
Property
SOME FIGURES FOR PORTUGAL 2016
Course Title | Presentation Title | Name or Initials (Go to Insert > Header & Footer to update text)15
Avg_deal_size Total Volume
Global Ranking
Volume per
Capita (Rank)
Business
Finance Global
Ranking
P2PB—largest
volume (Rank)
Reward CF--most
popular (Rank)
Donation CF
(Rank)
5698 48/144 0.46(45/144) 44/144 3,582,189.46
(33/46)
1,155,911.72
(36/140)
62,775.73
(35/54)
0,11 0,26 0,62
1,95
4,80
- - -
1,09
3,81
-
133%142%
216%
146%
0,00%
50,00%
100,00%
150,00%
200,00%
250,00%
-
1,00
2,00
3,00
4,00
5,00
6,00
2012 2013 2014 2015 2016
Milhões
Total Volume Business Finance Percentage of Change in Total Volume
Course Title | Presentation Title | Name or Initials (Go to Insert > Header & Footer to update text)16
III. EUROPEAN ALTERNATIVE FINANCE BENCHMARKING DATA 2016 (Currency: Euro)
Introduction:
• 20+ Research Partners
• Analysis from 267 EU Platforms & 77 UK Platforms
• Analysis from 46 Countries + UK:Germany, France, Spain, Italy, Netherlands, Austria, Norway, Czech Republic, Finland, Switzerland, Denmark, Sweden, Estonia, Lithuania, Poland, Belgium, Portugal, Latvia Slovakia, Romania, Greece, Slovenia, Bulgaria, Romania, Ukraine, Russia, Hungary, Ireland, Iceland, Monaco, Malta, Belarus, Croatia, Kosovo, Malta, Monaco, Turkey, Georgia, Cyprus, Albania , Andorra, Bosnia & Herzegovina, Macedonia, Montenegro
The Size & Growth of Alternative Finance in Europe
Total Volume (Excluding UK) Total Volume (Including UK)
Total Volume by European Country - 2016
Slovenia: €4.7mPortugal: €4.4mPortugal Europe Rank (2016): 23/47
Total Alternative Finance Volume per Capita by Country - 2016
Portugal Europe Rank (2016): 24/47
Total Alternative Finance Volume per Capita vs GDP per Capita - 2016
More P2P
More non-investment (e.g. Reward CF, Donation CF)
The Diversity of Models –2016 Taxonomy
Alternative Finance Model Europe 2016Market Share within Europe
Portugal 2016Market Share
within Portugal
P2P Consumer Lending € 696.81m 34%
P2P Business Lending € 349.96m 17% €3.299 74.6%
Invoice Trading € 251.87m 12%
Equity-based Crowdfunding € 218.64m 11%
Reward-based Crowdfunding € 190.76m 9% €0.241m 24.1%
Real Estate Crowdfunding € 109.45m 5%
P2P Property Lending € 95.15m 5%
Balance Sheet Business Lending € 59.13m 3%
Donation-based Crowdfunding € 32.40m 2% €0.013m 1.3%
Debt-based Securities € 22.85m 1%
Balance Sheet Consumer Lending € 16.74m 1%
MiniBond € 10.16m .5%
Profit Sharing Crowdfunding € 8.36m .41%
Balance Sheet Property Lending € 1.00m .05%
Model Portugal
P2PB NA
Reward-
based CF
1. Food & Drink, 2.
Arts & Music &
Design,
3. Film &
Entertainment
Donation-
based CFCharity
Top FundedIndustries
Markets Dynamics by Models--Qualification Rate & Successful Funding Rate
Course Title | Presentation Title | Name or Initials (Go to Insert > Header & Footer to update text)25
Model Portugal (SFR/OR)
P2PB NA
Reward-
based CF45% / 35%
Donation-
based CF55% / 55%
Market Dynamics by Models--Repeated Funding Rate
Course Title | Presentation Title | Name or Initials (Go to Insert > Header & Footer to update text)26
Model Portugal
P2PB NA
Reward-
based CF2.5%
Donation-
based CF25%
Market Dynamics by Models—Female Fundraisers & Funders
Course Title | Presentation Title | Name or Initials (Go to Insert > Header & Footer to update text)27
Model
Portugal
(Fundraisers/
Funders)
P2PB NA/ 9%
Reward-
based
CF
NA
Donation
-based
CF
NA
Developments & Innovations –
Cross Border Inflow & Outflow by Proportion of Model Volume
Course Title | Presentation Title | Name or Initials (Go to Insert > Header & Footer to update text)28
ModelPortugal (Inflow/
Outflow)
P2PB 0 / NA
Reward-
based
CF
15% / 2.5%
Donation
-based
CF
NA / 7.5%
Developments & Innovations –
Platforms Internationalisation Strategy by Model
Course Title | Presentation Title | Name or Initials (Go to Insert > Header & Footer to update text)29
Model Portugal
P2PB NA
Reward-
based
CF
No International
Expansion
Strategy
Donation
-based
CF
No International
Expansion
Strategy
Risk
Course Title | Presentation Title | Name or Initials (Go to Insert > Header & Footer to update text)30
Model Portugal
P2PB NA
Reward-
based
CF
Fraud: High Risk
Cyber attach: Medium
All others: Low to very
Low Risk
Donation
-based
CF
All very low risk
Perception towards Existing National Regulation
Course Title | Presentation Title | Name or Initials (Go to Insert > Header & Footer to update text)31
Model Portugal
P2PB NA
Reward-
based
CF
Adequate and
appropriate for my
platform activities.
Donation
-based
CF
Adequate and
appropriate for my
platform activities.
http://www.jbs.cam.ac.uk/ccaf
@CambridgeAltFin